Casino operator Delaware North has announced that it will meld its slot routes in Illinois with those of Eureka Entertainment’s Universal Gaming Group into a combined entity called Universal GEM Gaming.
The transaction has been approved by the Illinois Gaming Board. It supersedes Delaware North’s Gaming & Entertainment Management (GEM) – Illinois.
The deal also brings Delaware North together with Housatonic Partners, the private-equity firm behind Eureka Entertainment. Delaware North retains majority control.
While Eureka Entertainment obtained Universal Gaming Group in 2018, Delaware North has held GEM since 2016. It bought it from a private-ownership group at that time.
The combined Universal GEM brings together 125 employees and about 2,500 slot machines within the Land of Lincoln. According to the company, it “partners with restaurants, bars, veterans and fraternal organizations, and truck stops to provide onsite gaming to patrons.”
“This was a strategic move for Delaware North to strengthen our route-gaming business in Illinois by joining forces with a respected competitor,” Delaware North Group President for Gaming Brian Hansberry said in a statement. “Universal GEM Gaming will continue to complement our traditional casino and interactive gaming portfolio.”
“We are pleased to join Delaware North in this joint venture,” Housatonic Partners Managing Director Alex Dodd said in a statement. Universal Gaming Group, he said, and “GEM Gaming both have a successful history in the market, thanks in part to their demonstrated commitment to doing things the right way.”
“The joint venture is well positioned for growth, thanks to a complementary geographic footprint in the important market of northern Illinois and the ability to leverage the best practices and capabilities of both,” Delaware North gaming-division President Jason Gregorec said.
The combined Universal GEM Gaming is being led by CEO Russell Poore, late of Universal Gaming.
“All of us are excited about this venture with Delaware North. It combines the best aspects of two pioneering VGT companies in Illinois, all under the leadership of a company that has deep capabilities and experience in gaming, operations and marketing,” he said.
“This venture will allow us to provide more value to game players, more effective service capabilities to our partner locations, and a better gaming experience overall,” Poore said.
Former GEM Gaming General Manager David Frame remains with Universal GEM as Chief Revenue Officer. Armory Securities advised both parties on the transaction.
Delaware North retained Jones Day law firm as legal advisor and the Greenberg Traurig firm as regulatory advisor. Foley & Lardner was GEM Gaming’s legal counsel and the Fox Rothschild firm its regulatory counsel.
